Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and tax bases:

FMV Tax Basis

Inventory $ 20,000 $ 10,000

Building 150,000 100,000

Land 230,000 70,000

Total $ 400,000 $ 180,000

The corporation also assumed a mortgage of $200,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $220,000. The exchange met the requirements to be tax-deferred under 351.

. What amount of gain does Zhang recognize on the transfer of the property to her corporation?